On Tuesday stocks dipped but managed to close slightly positive as trading volume, once again, slowed.
The S&P rose 10 points to end the day at 4283.
The NASDAQ rose 46 points ending the day at 13,276.
Tuesday saw stocks try to consolidate gains.
Let’s review the SPX closing technical indicators on Tue Jun 6 2023 to see what to expect for Wed Jun 7 2023.
Stock Market Outlook Chart Comments At The Close on Tue Jun 6 2023
The index closed just slightly higher but left behind a bullish candlestick for Wednesday.
The SPX continues above the 21 day moving average and is pressuring the Upper Bollinger Band higher. This is bullish.
The 100 day moving average continued higher on Tuesday which is bullish
The Lower Bollinger Band is also starting to turn up which is another bullish signal.
The 21, 50, 100 and 200 day moving averages are rising which is bullish.
The S&P chart is more bullish than bearish but continues to warn that the rally has the market overbought and due for some weakness.
There are 7 up signal since January and no down signal in the chart.
Stock Market Outlook: Technical Indicators Review:
Momentum: Momentum is rising and positive.
- Settings: For momentum I use a 10 period when studying market direction.
MACD Histogram: MACD (Moving Averages Convergence / Divergence) issued an up signal on Friday May 26. The up signal strengthened on Tuesday. The MACD histogram also gained strength.
- Settings: For MACD Histogram, I am using the Fast Points set at 13, Slow Points at 26 and Smoothing at 9.
Ultimate Oscillator: The Ultimate Oscillator is rising and positive.
- Settings: The Ultimate Oscillator settings are: Period 1 is 5, Period 2 is 10, Period 3 is 15, Factor 1 is 4, Factor 2 is 2 and Factor 3 is 1. These are not the default settings but are the settings I use with the S&P 500 chart set for 1 to 3 months.
Slow Stochastic: The Slow Stochastic has an up signal in place. It is overbought.
- Settings: For the Slow Stochastic I use the K period of 14 and D period of 3. The Slow Stochastic tries to predict the market direction further out than just one day.
Relative Strength Index: The RSI signal is rising and positive. It is overbought.
- Settings: The relative strength index is set for a period of 5 which gives it 5 days of market movement to monitor. It is often the first indicator to show an overbought or oversold signal.
Rate of Change: The rate of change signal is falling indicating dips should be expected on Wednesday.
- Settings: Rate Of Change is set for a 21 period. This indicator looks back 21 days and compares price action from the past to the present. With the Rate Of Change, prices are rising when signals are positive. Conversely, prices are falling when signals are negative. As an advance rises the Rate Of Change signal should also rise higher, otherwise the rally is suspect. A decline should see the Rate Of Change fall into negative signals. The more negative the signals the stronger the decline.
Support and Resistance Levels To Be Aware Of:
4310 is resistance
4300 is resistance
4290 is resistance
4275 is resistance
4250 is resistance
4240 is resistance
4225 is resistance
4210 is resistance
4200 is resistance
4190 is resistance
4180 is resistance
4175 is resistance
4150 is resistance
4135 is support
4125 is support
4100 is support
Stock Market Outlook for Wed Jun 7 2023
For Wednesday the S&P technical indicators are strongly positive and continuing to rise. This is bullish for stocks on Wednesday.
The index will move above 4300 on Wednesday but there will be some selling. The close will be positive.
Potential Economic and Political Market Moving Events
This is a fairly light week for market moving events. That should help the bulls push above 4300.
8:30 Trade deficit which is expected to increase to -75.2 billion
3:00 PM Consumer credit is expected to be lower at $21.6 billion